European natural gas prices rose sharply on Monday, driven by increased competition from Asian buyers and a drop in pipeline deliveries from Norway. The Dutch TTF benchmark futures jumped by 4.3%, marking the largest single-day gain in the past month, according to data cited by Bloomberg.
The renewed upward pressure on prices follows a resurgence in Chinese spot market purchases of liquefied natural gas (LNG). After a prolonged absence, Chinese importers have returned to the market, intensifying global competition for LNG cargoes and narrowing availability for European buyers. This shift coincides with rising oil prices, which have a knock-on effect on gas markets due to the oil-indexed nature of some long-term contracts.
In parallel, technical maintenance on key Norwegian gas fields has curtailed pipeline supply to the continent. Norway remains the largest single supplier of gas to Europe following the decline in Russian imports. The impact of these planned works has been compounded by unplanned outages and a cold spell affecting parts of Europe, notably in the east. The unexpected drop in temperatures is expected to delay the seasonal process of refilling underground gas storage facilities, which had accelerated over the past few weeks due to lower prices and mild weather.
Gas prices had fallen by more than 15% since the beginning of April, enabling many European countries to increase stockpiles in anticipation of next winter. However, the renewed price volatility is prompting some buyers to seek alternative sources, with LNG flows increasingly diverted to Asia where buyers are paying a premium.
Dutch front-month gas futures, the regional benchmark, closed the trading session up by 3.6%. This reflects not only immediate supply concerns but also uncertainty about broader geopolitical developments and long-term policy shifts in the European energy landscape.
In Brussels, the European Commission is finalising legislation that would ban the signing of new gas contracts with Russian entities. The measure, expected to be adopted before the end of the year, is part of the EU’s broader strategy to phase out Russian fossil fuels entirely by 2027. Existing contracts would not be immediately terminated, but member states would be prohibited from entering into new supply agreements beyond the transition timeline.
“The European gas market remains highly complex for all participants due to geopolitical tensions and the uncertain evolution of energy supply in Europe,” said Jutta Dönges, Chief Financial Officer of Uniper SE, a major German energy company.
Market participants are closely monitoring developments in Asia, where continued LNG demand could further tighten supply for Europe during the summer injection season. Any delays in replenishing gas reserves ahead of the 2025–2026 heating season may expose the continent to price spikes and supply risks if another period of extreme weather or supply disruptions materialises.
The current price rebound follows a period of relative stability earlier this year, during which Europe benefited from high storage levels, reduced consumption, and steady LNG inflows. However, this balance remains fragile, with infrastructure limitations and global demand dynamics capable of triggering renewed volatility.
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